Cryptocurrency Swamp to Drain by Elon Musk’s Twitter
Cryptocurrency Swamp to Drain by Elon Musk’s Twitter, A particular pet-themed cryptocurrency, which doesn’t require any additional promotion from me, has announced that it would once again promote its digital products on London’s public transportation system.
Only this time, the paw-prints of regulators can be seen on the advertisements. It currently presents itself as a provider of “ecosystems” and “crypto education” after an initial campaign was prohibited for dangling mega-gains to investors.
The fine print warns passengers that cryptocurrency is unregulated and can go up as well as down – not exactly Mad Men material. However, it’s emblematic of a hype-fueled industry that’s been chastened by the first snowflakes of a crypto winter, with a surge in pandemic speculation giving way to price drops, employment cutbacks, and regulatory crackdowns.
However, things are a little different in the racier realm of social media. Elon Musk’s “Crypto Twitter,” which he appears to be in charge of, exhibits no such discipline — and, like other platforms, has long been a magnet for hype, shady research suggestions, and very real scams. According to the Federal Trade Commission, more than 95,000 customers claimed $770 million in damages due to social media fraud in 2021.
Elon Musk himself has promised to drain the network’s swamp of scams
Musk has pledged to clear the network of frauds, spam, and bots — a noble objective, but one that seems incongruous given that they thrive in the same frictionless hive of communication that makes Twitter Inc. money. Cryptocurrency Swamp to Drain by Elon Musk’s Twitter
Musk also appears to want to get Twitter closer to the crypto train, tweeting suggestions like revamping its subscription non-fungible tokens service and taking Dogecoin payments. Most cryptocurrency ads are banned on Twitter and require prior clearance, but proponents have found alternative ways to spread the word.
Given how strongly the winds of regulatory change are blowing these days, this may be the best time for Musk to follow through on his promise of a clean-up. He loves to portray himself as a defender of free expression, and he may be planning to follow Asian social media’s lead in making money from digital tokens. However, if fraud continues to rise, consumer protection watchdogs may begin knocking on internet doors.
Some of this has already occurred. The UK government recently announced that prominent social media sites will be held accountable for combating fraudulent ads on their platforms, as well as adverts that contain so-called cryptojacking malware that mines cryptocurrency without authorization.
European Central Bank’s Fabio Panetta to tightened Crypto Regulations
In a scathing speech this week, Fabio Panetta of the European Central Bank criticised social media for aggravating the Fear Of Missing Out among newbies to the trading game while downplaying the related risks. According to the Financial Conduct Authority of the United Kingdom, more than half of under-40s are enticed to make a high-risk investment as a result of this. Cryptocurrency Swamp to Drain by Elon Musk’s Twitter
Twitter risks becoming associated with more than just free speech if it does not reform. It’s become a part of a crypto market that relies on word of mouth to keep attracting new users and justifying exorbitant costs. When the CEO of crypto exchange FTX, Sam Bankman-Fried, recently portrayed an imagined yield-farming crypto project as increasing in value through financial-engineering “magic” and word of mouth, he cited the Twitter water cooler gang as important actors in enhancing virtual values.
Twitter has stepped in to fill the void left by the stock tip from the shoe shiner. It’s possible that this will come back to bite it. In October, Twitter co-founder and Bitcoiner Jack Dorsey tweeted about impending “hyperinflation.” Inflation rates have since soared, but Bitcoin has been a poor hedge, plummeting more than 40%.